The Parmenion Group has created Parmenion Ethical so as to streamline and integrate activities in the fields of Western-style ESG investments and Islamic Finance. ESG stands for:
- Socially-responsible; and
- Good governance.
As explained in “About Us”, we are convinced that a double filter incorporating ESG and the guidelines of Islamic Finance will add value to those who care for investment solutions that offer:
- a good monetary risk-adjusted return; and
- a social/moral non-monetary dividend in the form of doing something that has a positive impact on society and the activities of ethical entrepreneurs
Parmenion Ethical: specialized provider within Parmenion Group
The most efficient way of doing this was the creation of a new group company with an experienced management and specialized key staff. Our experienced key decision takers have been involved in ethical investment advice and hands-on investment strategies for 15 or more years. During this period, we have established partnerships with specialized consultants and asset managers both in the Islamic Finance world and within the ESG community. The Parmenion philosophy, through which we will focus mainly on the top-down aspect of investing (with best-of-breed partners assisting us in the bottom-up, deal- and security-picking phases), is also core credo at Parmenion Ethical.
A key element of our approach is the afore-mentioned double filter. The Parmenion databases include information about some 5,000 asset managers and 25,000 investment strategies/funds. We believe that the double filter will not be too limiting: we will be left with a sufficiently large pool of good investment propositions that can contribute to our funds either through return enhancement, risk-reduction or both. And when necessary we will incorporate so-called completion strategies with direct investments so as to gain the necessary exposure and market impact.
Parmenion Group’s proprietary Asset Allocation, Risk Management and Manager Selection models are used to create the best risk-adjusted solutions, with the double filter acting as an initial screening phase.
Purification Strategy put in place
No matter how good one tries to filter, one should always be ready to bump into pockets of ‘impurity’, i.e. investments where new information ‘ex post’ indicates that things were not in line with our ethical and moral constraints after all. Whoever suggests that this will never happen is not being very truthful. We prefer to be transparent and open.
We have participated actively in the creation of a charity that will help us coordinate the purification of impure income.
This foundation – Triple F Foundation – has as one of its main goals the coaching and training of socially-responsible ethical entrepreneurs of today and tomorrow. Both via educational projects and via tailor-made sessions with selected businessmen and corporate talents. We will also purify through donations to other selected charities across the globe.
Investors will be informed at least quarterly about the investment portfolios, their performance and compliance with our ethical and risk-related guidelines through in-depth reports, next to receiving monthly fact sheets and/or strategy updates from our CIO. Our fund managers are activist investors who will act immediately whenever ‘impurity’ is an issue; and you will hear about it.
Own Fund Launch
We will first launch (Q2 2017) a so-called, closed-end fund solution ‘Triple F Ethical Private Equity/Venture Capital Fund’ focusing on non-listed investments via funds and direct investments. This solution will only be offered to qualified, well-informed investors. More information about the fund and its three sub-funds can be found in “Funds”. We are already working on the creation of a second fund solution (open-ended; investment through funds in listed securities), which will make our approach also available to investors who require more liquidity. This second fund will launch in the first half of 2017 and follow the philosophy and approach of the Nicanor All-Weather Fund, a so-called ‘balanced’ strategy developed by our colleagues at Nicanor together with Elite Fund Management (the Netherlands). A big difference with the standard Nicanor approach will of course be that we do apply our double, ethical filter under all circumstances.
Both funds will have a global focus. For more information about our fund advisory services, click here.
Tailor-made solutions are key ingredients of the Parmenion approach to investing. For philanthropic institutional and/or private investors who want to set up efficient charities that generate acceptable risk-adjusted returns based on our ethical approach, we can create funds or special purpose vehicles in a cost-efficient manner. For more information, see our page on ‘Philanthropy’.